Nigeria LNG expansion gets Shell’s backing

These conditions included a formal commitment from the organisations providing financing for the project. Subsequent to the FID, NLNG has announced awards of engineering, procurement and construction (EPC) contracts.

NLNG is owned by Nigeria LNG Limited, jointly owned by the Nigerian National Petroleum Corporation (NNPC – 49%), Shell (25.6%), Total (15%) and Eni (10.4%). All shareholders supported the EPC awards and construction schedules will be finalised once the situation with Covid-19 has stabilised.

Nigeria LNG awarded EPC contracts valued US$4Bn to Saipem, in a joint venture with Daewoo E&C Co Ltd and Chiyoda Corporation.

Once operational, Train 7 will add around 8 mta of capacity to the Bonny Island facility, taking the total to around 30 mta. The NLNG Train 7 project consists of constructing a complete LNG train and an additional liquefaction unit with a total capacity of approximately 8 mta, plus other extensive associated utilities and infrastructure.

“While remaining mindful of prevailing macro-economic challenges, Shell continues to see NLNG as a great resource that can deliver value to the people of Nigeria and investors alike. This decision is consistent with our long-term strategy and our disciplined approach to capital investment,” said Shell integrated gas and new energies director Maarten Wetselaar. “With global LNG demand expected to double by 2040, the expansion of the NLNG Bonny Island facility is crucial in helping Shell meet the world’s growing energy needs,” said Mr Wetselaar.

‘‘We are happy with the progress NLNG has made over the years and its enormous contribution to the Nigerian economy. The EPC awards for Train 7 is good news for Nigeria with the potential to bring more export revenues, unlock new projects, and attract foreign direct investments, in addition to transforming the economy of the Niger Delta and Nigeria as whole,” said Shell Petroleum Development Company of Nigeria Ltd country chair and managing director Osagie Okunbor.

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